Health In Tech, Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Health In Tech, an Insurtech platform company, has announced the pricing of its initial public offering (IPO) of 2,300,000 shares of Class A common stock at $4.00 per share. The company will begin trading on the Nasdaq Capital Market on December 23, 2024, under the ticker symbol HIT. The underwriter has a 30-day option to purchase up to 345,000 additional shares.

The IPO is expected to close on December 24, 2024. The company plans to use the proceeds for system enhancements, service offerings expansion, sales and distribution channels growth, talent development, and working capital. American Trust Investment Services is serving as the sole book-running manager for the offering.

Positive

• IPO provides new capital for business expansion and development
• Listing on Nasdaq Capital Market increases visibility and trading accessibility
• Multiple planned growth initiatives including system enhancements and service expansion

Negative

• Relatively small IPO size might limit institutional investor interest
• Single book-running manager may indicate market support

Insights

Financial Analyst

Health In Tech's IPO represents a strategic entry into the public markets, raising $9.2 million through the offering of 2.3 million shares. The $4.00 per share pricing suggests a conservative valuation approach, likely influenced by current market conditions and the company's growth stage. The additional 345,000 share option could potentially increase proceeds by $1.38 million if exercised. The company's focus on AI-driven insurtech positions it in a high-growth sector, though the relatively modest IPO size indicates a measured approach to public market entry. The allocation of proceeds towards system enhancements and expansion initiatives demonstrates a clear growth strategy, but investors should note that working capital requirements could consume a significant portion of the raised funds. The choice of Nasdaq Capital Market listing aligns with the company's size and provides adequate liquidity potential for early-stage investors.

Tech Industry Analyst

The insurtech sector's intersection with AI technology positions Health In Tech strategically in a rapidly evolving market. The company's planned investment in system enhancements signals a commitment to technological advancement, important for maintaining competitive advantage in the AI-driven insurance space. For context, successful insurtech platforms typically require substantial technological infrastructure investment to scale effectively and maintain market relevance. The focus on talent development is particularly noteworthy, as AI expertise remains a scarce resource in the insurance technology sector. However, the relatively modest IPO size may limit the scope and pace of technological advancement compared to better-funded competitors. The success of their platform will largely depend on how efficiently they can allocate these resources to develop and enhance their AI capabilities while expanding their market presence.

STUART, Fla., Dec. 20, 2024 /PRNewswire/ -- Health In Tech, Inc., an Insurtech platform company backed by third-party AI technology, today announced the pricing of its initial public offering of 2,300,000 shares of its Class A common stock, at a public offering price of $4.00 per share. In addition, Health In Tech has granted the underwriter a 30-day option to purchase up to an additional 345,000 shares of its Class A common stock at the initial public offering price, less underwriting discounts and commissions. The shares are expected to begin trading on the Nasdaq Capital Market on December 23, 2024, under the ticker symbol "HIT". The offering is expected to close on December 24, 2024, subject to customary closing conditions.

American Trust Investment Services, Inc. is acting as the sole book-running manager of this offering.

Health In Tech intends to use the net proceeds from the offering towards system enhancements, the expansion of service offerings, expansion of sales and distribution channels, talent development and retention, working capital and other general corporate purpose. 

A registration statement on Form S-1 (File No. 333-281853) relating to the shares was filed with the Securities and Exchange Commission and became effective on December 19, 2024. This offering was made only by means of a prospectus, forming part of the effective registration statement. A copy of the prospectus relating to the offering can be obtained when available, by contacting American Trust Investment Services, Inc., 230 W. Monroe Street, Suite 300, Chicago, IL 60606, or via E-Mail at ECM@amtruinvest.com. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Health In Tech

Health in Tech, Inc. ("HIT") is an Insurtech platform company backed by third-party AI technology. We offer a dynamic marketplace designed to create customized healthcare plan solutions while streamlining processes through vertical integration, process simplification, and automation. By eliminating friction and complexities, HIT enhances value propositions for employers and optimizes underwriting, sales, and service workflows for Managing General Underwriters (MGUs), insurance carriers, licensed brokers, and Third-Party Administrators (TPAs). Learn more at healthintech.com.

Forward-Looking Statements Regarding Health In Tech

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity.

Investor Contact

Investor Relations:

ir@healthintech.com

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SOURCE Health In Tech

FAQ

What is the IPO price and share count for Health In Tech (HIT) stock?

Health In Tech (HIT) is offering 2,300,000 shares of Class A common stock at $4.00 per share, with an additional 345,000 shares available through the underwriter's 30-day option.

When will Health In Tech (HIT) begin trading on Nasdaq?

Health In Tech (HIT) shares are expected to begin trading on the Nasdaq Capital Market on December 23, 2024.

How will Health In Tech (HIT) use the IPO proceeds?

Health In Tech will use the proceeds for system enhancements, service offerings expansion, sales and distribution channels growth, talent development, and working capital.

What is the total potential value of Health In Tech's (HIT) IPO?

The total potential value could reach $10.58 million if all shares are sold, including the additional 345,000 shares from the underwriter's option (2,645,000 total shares at $4.00 per share).

Who is the underwriter for Health In Tech's (HIT) IPO?

American Trust Investment Services is acting as the sole book-running manager for the IPO.